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Circular No. 246/03/2025-GST
F. No. CBIC-20001/14/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
*****
North Block New Delhi,
Dated the 30
th
January, 2025
To,
All the Principal Chief Commissioners/ Chief Commissioners
All the Principal Directors General/ Directors General
Madam/Sir,
Subject: Clarification on applicability of late fee for delay in furnishing of
FORM GSTR-9C- reg.
Representations have been received seeking clarification regarding levy of late fee
payable for delay in furnishing of reconciliation statement in FORM GSTR-9C. It has been
requested to clarify whether late fee under section 47 of Central Goods and Services Tax Act,
2017 (hereinafter referred to as the “CGST Act”) will be leviable where reconciliation
statement in FORM GSTR-9C is not furnished by the registered person alongwith the annual
return in FORM GSTR-9 but is filed subsequently beyond the due date of furnishing of
annual return.
2. In order to ensure uniformity in the implementation of the provisions of law across the
field formations, the Board, in exercise of its powers conferred by sub-section (1) of section
168 of the CGST Act, hereby clarifies the issues as below.
3. Prior to 01.08.2021, sub-section (2) of section 44 of CGST Act provided that a
registered person who is required to get his accounts audited in accordance with the
provisions of sub-section (5) of section 35 of the CGST Act shall furnish the annual return
under sub-section (1) of the said section along with a copy of the audited annual
accounts and a reconciliation statement. From 01.08.2021 onwards, with the omission of
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the requirement of getting accounts audited in accordance with the provisions of sub-section
(5) of section 35 of the CGST Act, sub-section (1) of section 44 of CGST Act provides for
furnishing of annual return which may include a self-certified reconciliation statement,
reconciling the value of supplies declared in the return furnished for the financial year, with
the audited annual financial statement for every financial year electronically, within such
time and in such form and in such manner as may be prescribed. Further, before 01.08.2021,
sub-rule (3) of rule 80 of Central Goods and Services Tax Rules, 2017 (hereinafter referred to
as the “CGST Rules”) provided that accounts shall be audited as per sub-section (5) of
section 35 of the CGST Act in case the aggregate turnover of a registered person exceeded
two crore rupees in a financial year and such taxpayer shall furnish a copy of audited annual
accounts and a reconciliation statement, duly certified, in FORM GSTR-9C. From
01.08.2021 onwards, sub-rule (3) of rule 80 of CGST Rules provides that taxpayer with
aggregate turnover during a financial year exceeding five crore rupees, shall furnish a self-
certified reconciliation statement as specified under section 44 of the CGST Act in FORM
GSTR-9C along with the annual return in FORM GSTR-9 on or before the thirty-first day of
December following the end of such financial year.
3.1 Therefore, on a combined reading of section 44 of CGST Act with rule 80 of the
CGST Rules, it can be concluded that both pre and post amendment, the provisions mandated
that registered persons required to furnish an annual return in FORM GSTR-9 for a financial
year shall also furnish along with it, a duly certified or self-certified reconciliation statement
in FORM GSTR-9C, which reconciles the value of supplies declared in FORM GSTR-9
furnished for the said financial year with the audited annual financial statement. It is also
mentioned that a reconciliation statement in FORM GSTR-9C is required to be filed only if
the aggregate turnover of the said registered person during a financial year exceeds the
specified threshold limit.
3.2 Sub-section (2) of section 47 of the CGST Act provides for a levy of a late fee for
failure to furnish the return under section 44 of the CGST Act by its due date, which is to be
computed at the specified rate, for each day for which such failure continues, subject to a
maximum amount. As per the discussions above, in cases where reconciliation statement in
FORM GSTR-9C is not required to be furnished, annual return under section 44 of CGST
Act consists only of FORM GSTR-9 and in cases where a reconciliation statement in FORM
GSTR-9C is required to be furnished, the annual return under section 44 of CGST Act
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consists of the return in FORM GSTR-9 along with a reconciliation statement in FORM
GSTR-9C. Therefore, in cases where the reconciliation statement in FORM GSTR-9C is
required to be furnished along with the annual return in FORM GSTR-9, the furnishing of
annual return under section 44 of the CGST Act, may not be said to be complete, unless both
return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C are furnished. If
only return in FORM GSTR-9 is furnished and reconciliation statement in FORM GSTR-9C
is required but not furnished, annual return under section 44 of CGST Act cannot be said to
have been furnished.
3.3 In view of the above, it is clarified that late fee under sub-section (2) of section 47 of
the CGST Act, is leviable for the delay in furnishing of complete annual return under section
44 of the CGST Act, i.e. both FORM GSTR-9 and FORM GSTR-9C (where FORM GSTR-
9C is also required to be furnished) and the late fee shall be payable for the period from the
due date of furnishing of the said annual return upto the date of furnishing of the complete
annual return i.e. FORM GSTR-9 and FORM GSTR-9C. It is also to be noted that late fee is
not separately leviable for delayed furnishing of FORM GSTR-9 and delayed furnishing of
FORM GSTR-9C, but has to be calculated for the period from the due date of furnishing of
annual return under section 44 of the CGST Act till the date of furnishing of complete annual
return i.e.:
i. in cases where FORM GSTR-9C is not required to be furnished, the date of
furnishing of FORM GSTR-9;
ii. in cases where FORM GSTR-9C is required to be furnished along with FORM
GSTR-9,
a. the date of furnishing of FORM GSTR-9, if FORM GSTR-9C is
furnished alongwith FORM GSTR-9; or
b. the date of furnishing of FORM GSTR-9C, if FORM GSTR-9C is
furnished subsequent to furnishing of FORM GSTR-9.
4. It is further mentioned that vide notification No. 08/2025-Central Tax dated
23.01.2025, the late fee in respect of delayed filing of complete annual return for any
financial year upto FY 2022-23 has been waived, which is in excess of the late fee payable
under sub-section (2) of section 47 of CGST Act upto the date of furnishing of return in
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FORM GSTR-9 for the said financial year, if the reconciliation statement in FORM GSTR-
9C is furnished on or before 31
st
March 2025. Accordingly, in cases where reconciliation
statement in FORM GSTR-9C was required to be furnished along with the return in FORM
GSTR-9, but was not furnished so for any financial years upto FY 2022-23, and has been
furnished subsequently on or before 31
st
March, 2025, then no additional late fee shall be
payable for delayed furnishing of FORM GSTR-9C which is in excess of the late fee payable
under section 47 upto the date of furnishing FORM GSTR-9 for the said financial year.
Further, no refund shall be admissible in respect of any amount of late fee already paid in
respect of delayed furnishing of FORM GSTR-9C for the said financial years.
5. It is requested that suitable trade notices may be issued to publicize the contents of
this Circular.
6. Difficulty, if any, in the implementation of this Circular may be brought to the notice
of the Board.
Yours faithfully,
Gaurav Singh
Commissioner (GST)